Constellation Brands (STZ) shares are higher as the maker of Corona beer, Robert Mondavi wines, and other alcoholic beverages reported better-than-expected profit and full-year outlook, and raised its dividend.
The company posted fiscal 2023 fourth quarter earnings per share (EPS) of $1.98, beating estimates. Sales of nearly $2 billion came in slightly lower than anticipated.
Revenue at the company’s beer business fell 2% as higher prices were offset by increased logistics and other costs, including the hiring of more employees "to align with the momentum of our beer brands." Wine and spirits sales dropped 14% on fewer shipments.
However, CFO Garth Hankinson explained that for the year, Constellation’s beer business exceeded the company’s guidance for net sales and operating income, and its wine and spirits business expanded its operating margins.
Higher Guidance and Dividend
Constellation indicated it sees fiscal 2024 EPS of $11.70 to $12, ahead of forecasts. The company also said it was raising its per-share quarterly dividend to $0.89 from $0.80.
Shares of Constellation Brands are up 1% today, but down 3% this year.